Financial Wellness Content Bridges the Global Literacy Gap

Low levels of financial literacy can act as a significant barrier to individuals seeking financial services at a consumer banking institution. Research conducted by the National Bureau of Economic Research found that individuals with lower levels of financial literacy are less likely to engage with formal banking services, such as opening a savings account or applying for a loan.

Key Findings:

• Financial Literacy Gaps Exist: According to the OECD, nearly one in three adults globally lacks basic financial literacy. This knowledge gap exposes individuals to financial risks and hinders their ability to make informed decisions.
• Trust is Essential: A survey by Edelman found that 81% of consumers believe that banks should provide more financial education resources. By offering such content, banks can build trust and strengthen their relationships with customers.
• Financial Stress is Prevalent: The American Psychological Association reports that money continues to be a significant source of stress for many Americans, with 64% citing it as a top stressor. Financial education can alleviate this stress by empowering individuals to take control of their finances.
• Impact on Customer Loyalty: A study by J.D. Power revealed that customer satisfaction is significantly higher among individuals who receive financial advice from their banks compared to those who do not. Providing financial wellness content can therefore enhance customer loyalty and retention.
• Economic Empowerment: Research by the Global Financial Literacy Excellence Center suggests that improved financial literacy is associated with better financial decision-making and overall economic wellbeing. Consumer banks play a crucial role in promoting this empowerment through accessible financial education resources.

In light of these facts, it’s evident that financial wellness content is not just a value-added service but a necessity for consumer banks aiming to empower their customers, drive positive financial outcomes, and promote retention.

Click here to learn more about how Caravan can support your audience with educational and engaging financial wellness resources.